'Affordable' housing project set to boost Welsh economy

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Two major housing projects planned for South Wales have been predicted to create 2,300 jobs and bring a £225 million economic boost to the region.

Funding has been announced for the proposed residential developments on a 39-acre site of a former steelworks at Whitehead in Newport and a 16-acre plot at Eirin Park, Tonyrefail.

Up to 50% of the homes on both sites will be 'affordable'.

Announcing the funding, economy minister Edwina Hart said the Welsh government has agreed a £7m loan to the Whiteheads Development Company and a £1m loan to the Parc Eirin Development Company to expedite the delivery of these schemes.

Both companies are subsidiaries of Tai Tirion, a not-for-profit organisation established following an initial alliance between the Welsh government and Principality Building Society to deliver high quality 'affordable' homes across Wales.

The independent charity will recycle all proceeds from the developments into other similar projects around Wales.

Edwina Hart said; ”Subject to planning permission, these two new projects are anticipated to create around 2,300 jobs and deliver an economic benefit in the region of £225m to the local economies. These are significant figures that will support job creation in the construction industry as well as businesses within the supply chain.

“They will also help transform brownfield sites into thriving communities and provide affordable homes in places where people want to live which are within the financial reach of young families and lower income families.

“I am also delighted Welsh government is working with the private sector and social enterprises to create this innovative model that can be replicated and rolled out to other areas across Wales.”

The proposed developments are the latest additions to the Tai Tirion portfolio, which also contains The Mill, a £100m 'affordable' housing development on the site of an old paper mill in the centre of Cardiff.

The Whiteheads Development will provide up to 400 homes and is predicted to deliver a £140m economic boost to the area, creating up to 1,500 jobs in the process.

Meanwhile, the Parc Eirin development will provide up to 260 homes and is expected to deliver a £85m boost to the local economy and create up to 800 jobs.

Housing and regeneration minister Carl Sargeant said: “These housing developments will bring forward a significant increase in the supply of housing and are further examples of how the Welsh government is helping to provide affordable homes for the people of Wales.

“Increasing the number of affordable homes in Wales is my number one priority and I’m pleased that a significant proportion of these new homes will be offered at lower than market rents.”